Crypto Market Sees Surge Ahead of Trump’s Inauguration
As the world prepares for President-elect Donald Trump’s inauguration, the cryptocurrency market is experiencing a significant upswing. Investors are shifting their focus to smaller, higher-risk coins, driving up prices and sparking optimism.
Altcoins Take the Lead
XRP and litecoin are among the biggest gainers, with increases of 13% and 22%, respectively, according to Coin Metrics. The CoinDesk 20 index, a broad crypto market benchmark, has gained nearly 5%. Meanwhile, bitcoin has seen a modest increase of less than 1% near $100,000, following a two-day rally of about 7% this week. Ether, on the other hand, has fallen nearly 3%.
Pro-Crypto Administration Sparks Optimism
Retail investors are looking for opportunities as a new pro-crypto administration prepares to take office. According to Alexander Blume, CEO of Two Prime Digital Assets, “The Trump administration is a rising tide that will lift all boats in crypto, and altcoins are seeing some early gains from this.”
Trading Platforms and Bitcoin Proxies See Gains
Trading platform operators Coinbase and Robinhood have each risen roughly 2%. MicroStrategy, which trades as a bitcoin proxy, has seen a modest increase of less than 1%.
High Expectations for Trump’s Presidency
The crypto market’s expectations for Trump’s inauguration and first steps as president are extremely high. Gracy Chen, CEO of crypto exchange Bitget, believes that “the first 50 days of Trump’s presidency will determine bitcoin’s trajectory in 2025.”
Crypto Advisory Council and Regulatory Changes
During his campaign, Trump promised to install a crypto advisory council in his first 100 days in office and replace Securities and Exchange Commission chair Gary Gensler. These promises have sparked optimism in the crypto community, with the CoinDesk 20 advancing 98% in the one month following the November election.
Speculation and Volatility
The possibility of the government’s “expected strategic reserve may include other ‘American’ cryptocurrencies” is driving speculation and fueling the action in small-cap cryptocurrencies. However, experts believe that the best long-term value for investors will still be in bitcoin.
Favorable Regulation and Bitcoin Mining
Trump has also promised to establish favorable regulation to encourage domestic “made in the USA” bitcoin mining and launch a strategic national bitcoin stockpile. Investors expect volatility in the flagship cryptocurrency this year, with bitcoin stuck in a tug of war between investors’ concerns about rising inflation under Trump and their optimism over his pro-crypto leadership.
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